A journey through policy, progress, and being a patient by Kate Steadman

January 19, 2006

Reform watch: look to states

A new study (released by Families USA) estimating the economic impact for businesses under Massachussets' new plan is today's real life example for why passing federal health care reform is almost impossible.

The study found that for every 1 company that suffers a net loss from the legislation, 18 will benefit. That's great news and an impressive ratio. But it also means businesses will still suffer, and that publicity is much too easy to capitalize on. Stories from across the state of mom and pop establishments going under will leave a stark impression that this legislation is unfair.

These anecdotes, though existing in a 1:18 ratio, will act like the frivolous lawsuits everyone reads about, and assume that tort reform is a mighty fix indeed. But in health care, myth is hard to fight.

Now, thankfully, Massachussets is a liberal state that recognizes some sacrifice is needed to get everyone covered. The rest of the country, however, does not look at small businesses closing so kindly. But between this and the Walmart bill, these renegade states might be able to tear a hole in our myths. Especially in contrast to Bush's won't-fix-a-thing-solution: HSAs.

Comments

After reading your post, I wasn't exactly sure whether you were for or against the new MA proposal, so I thought I would give everyone my take on the issue.

At least Massachusetts is a little closer to making Fair Share legislation actually "fair", by including businesses employing 11 or more employees. But it still doesn't include all employers, and larger employers have to pay a greater portion i.e. 7% for businesses with over 100 employees, and 5% for businesses employing between 11 and 100 employees.

Instead of legislating the burden of providing health insurance coverage, for the US population on employers, we should be seeking ways to remove that burden, so that US business can become more competitive in global markets. There are many more effective ways to provide "everyone" with medical care, without burdening business with that responsibility.